Justice Department Moves to Crush Environmental Lawsuit Threatening AI Facility Critical to National Security

WASHINGTON — The Justice Department filed a motion Tuesday to intervene and dismiss a private citizen lawsuit seeking to shut down a major artificial intelligence facility in Southaven, Mississippi, arguing that environmental activists are using federal law to undermine national security and hamper American technological innovation.

The case involves private litigants who sued xAI and its subsidiary MZX Tech LLC, alleging violations of Clean Air Act permitting requirements — even though the State of Mississippi, which administers the permitting program, determined that no permit was required. The plaintiffs are seeking an injunction and damages that would effectively power down the AI data facility, which trains and develops new AI models critical to both the economy and the Department of War. Note: View motion for intervention and dismissal here.

“Ultimate responsibility for enforcing federal law belongs to the Executive Branch, not private interest groups,” said Associate Attorney General Stanley Woodward. “The Department of Justice is committed to maintaining that constitutional order while protecting national security and promoting American energy and innovation.”

The move comes as President Donald J. Trump’s recent executive order, “Promoting Advanced Artificial Intelligence Innovation and Security,” tasks federal agencies to prioritize AI innovation and security across the government. The Department of War is among multiple agencies utilizing AI to protect Americans.

“The Department of Justice will not sit idly by while private organizations use environmental laws to undermine our national security,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Environment and Natural Resources Division. “This case reflects the important work of the Environment and Natural Resources Division to unleash American energy for the sake of innovation and security.”

In its filing with the U.S. District Court for the Northern District of Mississippi, the Justice Department argues that the Clean Air Act grants the federal government authority to intervene in citizen suits, and that the Constitution places responsibility for enforcing laws with the President — including the power to exercise enforcement discretion in the national interest.

The department is asking the court to dismiss the lawsuit, which officials say would turn off critical power during an energy emergency and hinder the War Department’s use of AI for national defense. xAI Motion to Intervene – ENRD.pdf

Justice Department officials warned that overly burdensome regulation, including private lawsuits seeking to implement their own environmental enforcement, threatens technological growth, American energy independence, and national security.

The NAACP filed a federal lawsuit Tuesday against xAI and its subsidiary MZX Tech, alleging the tech company is illegally operating 27 unpermitted methane gas turbines to power its Colossus 2 data center in Southaven, Mississippi — effectively building an unregulated power plant near homes, schools, and churches without required Clean Air Act permits.

The lawsuit, filed in the U.S. District Court for the Northern District of Mississippi, claims the company’s failure to obtain air permits for the facility, which powers its Grok chatbot, creates added health risks for families in North Mississippi and Memphis. The Southern Environmental Law Center and Earthjustice are representing the Mississippi State Conference of the NAACP and the national NAACP.

“A data center should not be a potential death sentence for a community’s health,” said Abre’ Conner, NAACP Director of Environmental and Climate Justice. “By looking to evade clear air laws to operate dirty turbines that emit pollution and known carcinogens, these companies are following a shameful, familiar pattern: asking Black and frontline communities to bear the toxic brunt of ‘innovation.’ As we shared since xAI started operating in Memphis, our homes, churches, and playgrounds will not be sacrifice zones for Big Tech’s convenience. The NAACP stands firm that true progress cannot be built by ignoring community health and our environment. Our right to clean air is not up for negotiation, especially when companies prove expediency not people is their priority.”

The gas turbines pump out smog-forming pollution, fine particulate matter, and hazardous chemicals tied to increases in asthma, respiratory diseases, heart problems, and certain cancers. The Southaven facility has the potential to emit more than 1,700 tons of smog-forming nitrogen oxides annually — likely making it the largest industrial source of NOx in the greater Memphis area, which already fails to meet national smog standards.

The illegal turbines also have the potential to release up to 180 tons of fine particulate matter, 500 tons of carbon monoxide, and 19 tons of formaldehyde — a toxic, cancer-causing chemical — each year, according to the complaint.

“xAI’s continued operation of these turbines without a permit and without adequate pollution controls is not only illegal, it’s an insult to families living nearby who for months have expressed serious concerns about how air pollution from the company’s personal power plant could impact their health and well-being,” said SELC Senior Attorney Ben Grillot. “xAI must be held accountable for its reckless, unlawful actions — and that’s exactly what this lawsuit aims to do.”

Hundreds of community members recently packed a Mississippi Department of Environmental Quality hearing about xAI’s facility, pushing back on the gas plant. Neighbors expressed significant concerns about both the unpermitted power plant’s impact on their air, health, and quality of life, as well as the impacts from a proposed separate 41-turbine power plant at the site.

The lawsuit follows a 60-day notice of intent to sue, required under the Clean Air Act, which was sent to xAI in February. The company continues to unlawfully operate its power plant even after receiving the notice, according to the complaint.

“xAI has been pumping illegal pollution into this community in its rush to power the ‘Colossus 2’ data center,” said Laura Thoms, director of enforcement for Earthjustice. “No company – and no industry – has a free license to pollute our air. xAI isn’t above the law, and we’re filing this lawsuit to hold them accountable.”

The NAACP is asking the court to declare that xAI has violated the Clean Air Act, force the company to stop operating unpermitted turbines at its Southaven facility, order the installation of best available control technology on the power plant, and assess financial penalties for every day it violated federal law.